The Ford Foundation has announced a significant investment of $6 million to support locally-owned businesses in Appalachia, in partnership with the REDF Impact Investing Fund (RIIF). This investment aims to drive economic growth, create new jobs, and attract further investment to the region.
The initiative prioritizes small businesses, which employ nearly half of Appalachia’s workforce, with the goal of building wealth that stays within the local economy. It also focuses on businesses in emerging industries, recognizing Appalachia’s potential for growth in sectors like solar and wind energy, as well as revitalized industries like textile manufacturing.
Unlike traditional investment vehicles, this initiative provides flexible financing solutions tailored to the needs of small businesses. This includes affordable loans, preferred equity, and revenue-based finance, offering diverse options to support their growth and success.
The investment aims to attract private sector investors, such as banks, insurance companies, corporations, and family offices, to invest for impact. These investors seek both financial returns and positive social outcomes for communities, making a tangible difference in the lives of individuals and the region’s future.
This initiative builds upon the Ford Foundation’s long-standing commitment to supporting economic opportunity in Appalachia. The foundation has previously invested over $14 million in grants and investments to promote job creation and economic growth in the region.
Local stakeholders, including Coalfield Development and Heartland Forward, have welcomed the initiative, highlighting its potential to create a positive impact on the region’s workforce and economic landscape.
The Ford Foundation and REDF are working together to create a sustainable model for collaboration between public, private, and philanthropic partners, driving capital towards often overlooked regions with immense growth potential. This investment represents a significant step towards strengthening the social and economic fabric of America and building a more prosperous future for the communities of Appalachia.
